Introduction:
Great news for businesses and large energy users in Maharashtra!
The Maharashtra Electricity Regulatory Commission (MERC) has issued a landmark order on June 18, 2025. This ruling brings much-needed clarity, boosting the state’s renewable energy landscape.
Now, eligible consumers can use both net metering for their rooftop solar energy systems and open access arrangements at the same time. This means more flexibility and greater savings for those embracing clean energy in Maharashtra.
Why This MERC Order Matters?
This significant MERC order came from a petition by Varun Beverages Limited (VBL) on August 9, 2024. VBL, a major beverage company and large electricity consumer in Maharashtra, sought clarity from MERC. They wanted to understand how net metering and open access could work together.
VBL operates a large manufacturing facility in Ahmednagar. They proposed installing a 3.8 MW rooftop solar energy system. Despite applying for net billing (a form of net metering) in April 2024, they faced delays from MSEDCL (Maharashtra State Electricity Distribution Company Limited).
This led them to approach MERC for a resolution.
The Core Issue: Combining Net Metering and Open Access
VBL’s main concern was simple: Can a consumer benefit from both net billing (for rooftop solar energy) and open access (for power sourced elsewhere, perhaps from a larger renewable energy project) simultaneously? This is vital for many large industrial consumers. They want to maximize their solar energy use while having the flexibility to buy extra power through open access.
Existing regulations, like the MERC (Distribution Open Access) (Second Amendment) Regulations, 2023, hinted at this. They stated that consumers with rooftop renewable energy systems can also use open access.
However, MSEDCL’s practical implementation seemed to be lagging, creating uncertainty in Maharashtra.
MERC’s Firm Stance and MSEDCL’s Response:
During hearings in September and December 2024, MERC expressed strong disapproval of MSEDCL’s delays. Despite MSEDCL challenging the regulations in court, MERC made it clear: there was no stay on implementing these rules.
On September 20, 2024, MERC firmly directed MSEDCL. They ordered MSEDCL to process VBL’s application for net billing and open access within seven days. They also mandated processing other similar pending applications within thirty days. MERC even warned of penalties and departmental inquiries for non-compliance in Maharashtra.
MSEDCL complied, approving VBL’s net billing application on September 25, 2024. They later confirmed connectivity for the solar energy system.
MSEDCL also processed nine other similar applications. This shows MERC’s firm action had a broader positive impact on renewable energy uptake in Maharashtra.
The Dispute and MERC’s Final Ruling:
Even after approval, VBL faced another hurdle: MSEDCL’s delay in signing the net billing agreement. This agreement is essential for billing adjustments. VBL also addressed MSEDCL’s new claim that it lacked jurisdiction for “Green Energy Open Access” approvals, saying this was for a central agency.
VBL countered strongly. They clarified their petition was about executing the net billing agreement and clarifying the simultaneous use of net billing and open access under existing rules. They highlighted their existing status as an open access consumer.
MERC’s final, clear ruling, addressing VBL’s key issues for Maharashtra:
Issue I: Net Billing Agreement & Compensation for Delay
MERC explicitly ordered MSEDCL to sign the rooftop solar energy net billing connection agreement with VBL. This agreement should be signed after installation but before system synchronization. This ensures billing adjustments start when the solar energy plant is ready.
MERC noted MSEDCL took longer than the mandated 15 days. While specific compensation isn’t detailed here, the ruling reinforces that DISCOMs are liable for penalties for such delays. This protects consumers’ interests in Maharashtra and encourages prompt action.
Issue II: Simultaneous Net Billing and Open Access
This is the most impactful part of the MERC order for Maharashtra. The Commission explicitly stated that eligible consumers with rooftop renewable energy systems can simultaneously use net billing (or net metering) and open access arrangements. This ruling directly stems from Regulation 3.5 of the MERC (Distribution Open Access) (Second Amendment) Regulations, 2023, which permits this combination.
This is a monumental decision for the renewable energy landscape in Maharashtra. It removes any confusion. It creates a clear path for businesses and industrial consumers to maximize their solar energy self-consumption through net metering. Simultaneously, they can meet remaining energy needs through cost-effective open access channels.
Why This MERC Order is a Game-Changer for Solar Energy in Maharashtra?
This MERC order dated June 18, 2025, is a pivotal moment for solar energy adoption and the broader renewable energy sector in Maharashtra. Here’s why:
- Clarity and Certainty: It removes uncertainty for large consumers combining net metering and open access. This clear framework encourages new investments in solar energy projects.
- Increased Savings: Businesses can fully use their rooftop solar energy installations for maximum savings through net metering. They can also optimize remaining power procurement through competitive open access rates. This hybrid approach offers significant cost benefits.
- Boost for Solar Adoption: With fewer regulatory hurdles and greater financial incentives, more businesses will likely install rooftop solar energy systems in Maharashtra. This directly helps meet the state’s renewable energy targets.
- Empowering Consumers: The ruling ensures DISCOMs follow timelines and regulations, with compensation for delays. This accountability builds trust and speeds up project implementation in Maharashtra.
- Alignment with Green Energy Goals: This order perfectly aligns with the national push for renewable energy. By facilitating hybrid power sourcing models, Maharashtra sets a strong example for other states.
Conclusion:
The MERC order on June 18, 2025, allowing simultaneous net metering with open access for solar power, is a landmark decision for Maharashtra. It brings clarity, encourages greater solar energy adoption, and empowers consumers to optimize their energy costs.
This progressive step by the Maharashtra regulatory body underscores the state’s commitment to a greener, more sustainable future.
FAQs:
Q1: What is the main outcome of the MERC order on June 18, 2025?
A: The order clarifies that eligible consumers in Maharashtra can now simultaneously use net metering for rooftop solar energy and open access for other power needs.
Q2: Who filed the petition that led to this MERC order?
A: Varun Beverages Limited (VBL) filed the petition seeking clarity on combining net metering and open access in Maharashtra.
Q3: Does this order apply only to new solar installations?
A: The order brings clarity for both existing and new systems by defining how net metering and open access can coexist for eligible consumers in Maharashtra.
Q4: How does Novergy help businesses benefit from this order?
A: Novergy helps by assessing eligibility, designing customized solar energy systems, guiding through the application process for net metering and open access, and optimizing energy procurement strategies in Maharashtra.
Understand how you can Benefit by Novergy Solar Parks to achieve maximum renewable energy & save on your Electricity Bills.
How Novergy Can Help You Navigate Net Metering and Open Access in Maharashtra?
At Novergy, we lead the solar energy revolution in India. With this new MERC order, businesses in Maharashtra have unprecedented opportunities for energy savings and sustainability.
Novergy specializes in designing, installing, and maintaining high-performance solar energy solutions. We understand the nuances of net metering and open access regulations in Maharashtra and across India. Our expert team can:
- Assess your eligibility for simultaneous net metering and open access based on the latest MERC guidelines.
- Design a customized solar energy system that maximizes self-consumption and integrates with your open access arrangements.
- Guide you through the application process for net metering and open access, ensuring accuracy and timely submission.
- Provide expert advice on optimizing your energy procurement strategies for the best savings.
- Help you understand the financial implications and return on investment for your solar energy project under the updated regulations in Maharashtra.
Maharashtra is committed to fostering a supportive environment for renewable energy.
Partner with Novergy to take full advantage of these developments and power your business with clean, cost-effective solar energy.
Contact Us Today!
Email: solar@novergy.net / enquiry@novergy.net
Number: +91-9116968967